Future of Fintech

3 Technologies Shaping the Future of Fintech

Technology is the driving force behind fintech. As tech innovations enter the horizon, the financial industry changes, too.

Fintechs must stay on the cutting edge of technology to remain relevant in a massively competitive field. Startups enter the scene regularly, and any business sitting still will quickly become obsolete.

A fintech business model must be built on a solid foundation yet malleable enough to change with the evolving landscape of technology. Any fintech leader must keep their finger on the pulse of these changes.

While humans may not be able to predict the future with 100% accuracy (yet), it’s safe to say that these three technologies will be driving and shaping the future of fintech over the next decade and beyond.


1. Automation is King

The e-commerce revolution has significantly changed how people handle their financial transactions. Something as basic as having to get up to find their credit card can be enough of a delay to cause a person to change their mind. 

So, fintech industries must include automated processes that are highly secure while simplifying every transaction to its bare bones. This requires precision knowledge of artificial intelligence, machine-based identification, and impeccable IT frameworks.

Fintechs that partner with banking institutions, as platforms like VictorFi do, will be inherently more successful in this endeavor. They receive the benefits of bank operations and IT while still remaining unregulated, enhancing the services they offer consumers.

This automation makes it possible to tailor products for a particular target market, including robots, chatbots, robot advisors, market tracking services, and facial recognition.

2. Cloud Computing Takes Over Financial Industries

Not too long ago, financial institutions used in-house-only software and backup servers to reduce the chance of breaches. Obviously, this limited their choices of programs and the services they could offer consumers.

Now, cloud technology is a billion-dollar industry and growing. The use of cloud technology efficiently will be an integral part of every fintech business’s framework. Cloud computing increases a business’s ability to develop and maintain applications, decreases the cost of infrastructure, and lower downtime (thus reducing overhead costs, as well). 

Cloud services also improve the integrity of a platform by instantly embedding security processes and automating how they are controlled. Security must change as the platform develops and grows. If the user is tasked with updating the security measures, it doesn’t always happen timely. But with cloud services, these changes are completed as the new versions are released.

These cloud services are public, private, and a hybrid of both. Fintech businesses should include all of these services in their platform framework to encompass a variety of consumers. Even banks are moving to cloud-based services through application programming services (APIs). This movement gives banks the ability to scale without the need to transform the entire architectural base of their institution.

3. IoT Crosses Into Finance

IoT has been everywhere but finances lately. But now, it’s getting its time in the spotlight as tech brings financial systems together with IoT through wireless communication networks, perception/smart sensor systems, and application/operations support.

Communication is expanding on a never-before-seen level. IoT communication offers solutions that allow devices to communicate in geographic locations that were impossible before, including wired and wireless networks.

RFID labeling through sensors will automate logistics and identification processes. Smart technologies work with embedded systems to create forms of communication with objects to enhance artificial intelligence opportunities.

These tech services enter the financial realm in various applications. It is now possible to monitor quantitative and qualitative data on a large scale, measuring and determining risk before a loan or when underwriting an insurance policy. Technology provides business-to-customer interaction on demand, reads and analyzes accumulated data, and predicts gains and losses.

Integrating IoT with blockchain will disrupt the banking industry. The software technologies significantly reduce room for error and increase security and trust.

Banks that don’t want to rewrite their architectural framework take advantage of IoT services by partnering with fintech businesses. The changes are already taking place and will be part of the normal transactions offered as the fintech landscape continues to evolve.


Fintech has altered the shape of finances irrevocably, but it’s not done yet. As new technology hits the scene, fintech options continue to expand. The future of fintech is now, but it’s not done making waves yet.

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